Gujarat Industrial Policy, 2009Scheme for Enhancement ofTechnical Competence andManpower

Government of GujaratIndustries & Mines Department

Resolution No. CED-112007/ 2081(1)/ISachivalaya, Gandhinagar

Dated: 27/2/2009

Read:

1. Industrial Policy, 20092. G.R. No. CED-112006-606-I dated 25.01.2008

Preamble

Gujarat is known for its enterprise and symbolizes the growth engine of India.Government of Gujarat has undertaken speedy reforms and continues tointensify steps to accelerate growth. With the establishment of 202 GIDCindustrial estates, 60 approved Special Economic Zones, 21 registered

Industrial Parks and 83 identified Industrial Clusters; Gujarat has generatedvast scope for employment of technically competent manpower.

Though the State has over the years attracted large volumes of investment theavailability of suitable manpower has been lagging. Despite large requirementof manpower on the one hand and institutional arrangements for equipping/skilling on the other, there has been a qualitative demand-supply mismatchresulting in shortage in the industry with simultaneous unemployment/underemployment.

To address this issue, the State Government intends to develop industry-responsive and readily employable manpower focusing on local resources.The Industrial Policy, 2009 has laid emphasis on the expansion of a skilledand educated manpower base.

With a view to enhance trained manpower by 2 lakhs per year, after 5th yearonwards, that is, on completion of operating expenditure support time of fouryears as mentioned in Para 3.6.2 of these orders, a scheme for enhancement oftechnical competence and manpower has been under consideration. Aftercareful consideration Government is pleased to introduce the followingScheme:

Resolution

Looking to the specific objective of providing need based, industry-responsive

managerially and technically competent manpower at various levels to theindustries in the State, along with the need of benchmarking the courses,Government has decided to evolve following four schemes:

(i) A scheme to establish and operationalize Anchor Institutes in thefocused sectors like chemical, engineering, textile, garment,infrastructure, gems & jewellery, plastic, etc.

(ii) A scheme for starting/ running industry-responsive specific courses atexisting ITIs/ Polytechnics / Engineering Colleges involving theindustry/ institutes as partners

(iii) A scheme to establish Extension Training Centers, in major GIDCEstates, identified Industrial Clusters and existing and upcomingIndustrial Parks and Special Economic Zones and

(iv) A scheme for setting up of specialized skill development institutes.

1.0 Operative period

All above schemes will come into operation from the date of issue of this GR and willremain in force till further orders.

2.0 Definition

1. Anchor Institute : The State Level Approval Committee will select aUniversity or Government Educational Institution established andoperating in Gujarat as an Anchor Institute for specific focus sectors likeChemical, Engineering, Textile, Gems & Jewellery, etc.

In each focus /identified sector, there could be only one institute as AnchorInstitute OR there could be at the most two institutes to function as Anchorand Co-Anchor Institute.

2. Nodal Institute : A degree or diploma level institute or ITI identified byAnchor Institute in accordance with para 3.5 for a specific region forparticular sector (e.g. Nodal Institute for Textile in South Gujarat).

3. Host Institute: A degree or diploma level institute or ITI identified forrunning need based specific training courses for a definite period underpara 4.2.

3.0 Scheme -1 : Setting up of State Level Anchor Institute

3.1 The scheme will be known as a " Scheme of financial assistance forsetting up State Level Anchor Institute" in the selected focus sectorsfor enhancement of technical competence and manpower.

3.2 Selection Criteria for Anchor Institute

The State Level Approval Committee may select the Anchor Institute on thebasis of some of the following criteria.

1. Market leadership/ industry acceptance of the Institute2. Availability of scholar faculty resources3. Understanding of the sector4. Availability of relevant infrastructure5. Global linkages6. Industry linkages7. Any innovative methodology or approach8. Suitable road map for implementation

3.3 Procedure and modalities

(i) The Anchor Institute will set up an exclusive cell for the purpose andwill engage full time employees as per requirements. The Cell will actas a nucleation center for training programmes in the respective sectorsin the entire state in collaboration with the Co-Anchor institute, if any.

(ii) The selected Anchor Institute shall submit a proposal with

comprehensive schedule of implementation of the entire programmeincluding the details of training courses to be run by the nodalinstitutions.

(iii) The selected Anchor Institute in its proposal will submit the yearlyprojection of number of trainees in different courses proposed by them.

(iv) The State Level Approval Committee will approve the programmes tobe implemented and budget requirement of Anchor/ Nodal Institutes.

(v) The representatives of industries shall be actively involved by selectedAnchor Institute for preparing the course material.

3.4 Role & Functions of Anchor Institute

(i) Anchor Institute will provide technical Support to the technicaleducational institutions in the Sector across shop floor, supervisoryand managerial level. Their Functions will include:

(a) To collect information on all the technical courses beingoffered in the State considering need to upgrade and make itindustry-responsive.

(b) To suggest required changes in the curriculum in the coursesat the degree level (both Undergraduate & Post graduate),diploma level and the courses offered by ITIs in the State.

(c) To suggest introducing new courses as per emerging needsof industries.

(d) To organize training programmes for faculty development.The training programmes will be planned in such a way thatall the faculties, except persons retiring in next 2 years, ofdegree level, diploma level institutes and ITIs are trainedatleast once in four years.

(e) To benchmark the courses offered by ITIs / Polytechnics andEngineering Colleges with international/ national standards.

To prepare teaching, learning and reference material forfaculty training programmes.

(g) To select and coordinate with nodal institutes at degree,diploma and ITI level and to oversee their performance

(h) To continuously evolve new training programmes based onthe need of the industries in the state and improvements/changes/ modifications/ upgradation in the courses basedon the industry feedback.

(f)

(i)

0)

To arrange faculty/ speakers from the institutes , industriesand professionals for the training programmes.

To encourage the faculties for undertaking R&D andconsultancy assignments.

(k) To continuously identify new areas of growth.

(ii) The Anchor Institutes will identify the trainers/ training partners to

train the faculties upon approval by the State Level ApprovalCommittee.

3.5 Selection of Nodal Institute by Anchor Institute

In view of large number of degree, diploma, ITI level institutes in therespective sectors, the Anchor Institute may identify one or more NodalInstitutes (not more than three such institutes) for performing its tasks in therespective regions as per requirements of that sector considering criteria asmentioned below, however the Anchor Institute shall be ultimatelyresponsible for quality of outcome.

(a) Intake capacity, number of students passed out, placement ratio.(b) Availability of existing infrastructure and approach of the management

of the institution.

(c) Presence of industries in the surrounding areas.

(d) Existing training resources in terms of faculties and training materials,equipments and library.

3.6 Quantum of Assistance

3.6.1 Capital Expenditure Support

The institutes will be provided following financial support:

(i) Expenditure towards equipment only will be reimbursed and cost ofland, building required for setting up of Anchor/ Nodal institute willnot be included.

(ii) Expenditure for internal refurnishing of the premises dedicated for theprogramme will also be eligible for financial support.

(iii) No institutional overheads will be permitted.

(iv) 3% contingency may be considered as part of the project cost.

(v) Reasonable amount of Pre-project expenses, to the extent of up to Rs. 2lakhs, may be considered.

3.6.2 Operating Expenditure Support

(i) Financial support towards operating expenses for Anchor and Nodal

Institutes would be allowed to the extent of the following percentages:

First & Second Year 100%Third Year 75%Fourth Year 25%

(ii) The cost of office consumables, communication expenses and travelling

and dearness allowance of the faculty for the program will beapproved as a part of the operating cost.

3.6.3 Other Conditions

(i) Total financial assistance under both capital and operating expensessupport shall not exceed Rs. 10 crores for each sector for the entireoperative period.

(ii) The Anchor institute shall submit the progress report on completion ofevery six months to the State Level Approval Committee.

(iii) The performance of the Anchor Institute shall be reviewed every two

years by State Level Approval Committee for continuing financialassistance.

(iv) At the end of the fourth year, the State Level Approval Committeeshall evaluate the performance of the Anchor Institutes on the basis offollowing objective deliverables.

(a) Extent of international benchmarking

(b) Moving in the direction of assimilation of the trainingprogrammes as elective subjects in the regular degreecourses

(c) Popularity of the programme to be judged by number ofintake seats v/s number of applicants.

(d) Number of man-months devoted for the training of facultyand beneficiaries

(e) Accomplishment against time schedule

4.0 Scheme - 2: Short-term bridge courses under PPP Mode

4.1 The Scheme will be known as a "Scheme of financial assistance forrunning short-term bridge courses under Public Private Partnership".

4.2 Implementation Models

Need based specific training courses for a definite period under PPP could beintroduced in the existing ITIs/ Polytechnics/ Engineering colleges withfollowing two options. The industry partner can opt for any of the options:

Option I

The Industry Partner could run one or more courses from the existing courses,with addition of certain subjects addressing their specific requirements. Suchmodules could also be offered to students of non-ITI / Polytechnics /Engineering colleges.

Option II

The Industry Partner could start new course(s) as per their specificrequirements in the existing ITIs/ Polytechnics/ Engineering colleges, whichcould be offered to existing students of respective colleges and to theapprentice and external trainees, etc.

4.3 Quantum of Assistance

For running courses at Existing ITIs / Polytechnics/ Engineering colleges, thehost institute will offer the basic infrastructure facilities i.e. land & building.The cost of machinery & equipment of up to 75%, limited up to Rs. 100 lakhs,will be contributed by Directorate of Technical Education and/or Directorateof Employment & Training and/or Industries Commissionerate and thebalance cost shall be borne by partner industrial house/ IndustriesAssociation/ Institutes (referred to as "Industry Partner").

4.4 Implementation Process

For the purpose of this Scheme, DET or DTE, Industry/ IndustryAssociation/ Institute and Industries Commissionerate will have insitutitonalmanagement committee (IMC) to run the courses.

4.4.1 Role of Institutional Management Committee (IMC)

The role of the IMC will include to:

(i) Form an Advisory Committee comprising representatives of theIndustries/ Industries Association, Government and institutesincluding sector experts and shall hold its meeting atleast twice in ayear.

(ii) Decide on the requirements of equipment and training facilities andprocure the assets.

(iii) Decide and finalize the course content.

(iv) Determine the fee structure for the course.(v) Receive grants/ donations

(vi) Maintain separate accounts for receipts and expenditure.(vii) Appoint the Course Coordinator.

(viii) Select external and internal faculties and decide their remuneration.(ix) Brand and promote the objectives of the Center as deemed fit.

4.4.2 Role of State Government

The role of the State Government will include to:

(i) Provide necessary accreditations to the courses on fulfillment ofrequisite criteria.

(ii) Nominate members on the Advisory Committee of the IMC.

4.4.3 Role of the Host Institute

The role of the host institute will include to conduct examinations oncompletion of courses.

4.4.4 Role of Industry Partner

The role of Industry Partner will include to:

a) Raise minimum 25% requirement of the cost of machinery &equipment and required funds if any for upgradation ofinfrastructure facilities.

b) Sponsor trainees for a minimum of 25% intake capacity.c) Train the faculty of the host institution for smooth conduct of the

course.

d) Extend technical support initially, if required, by sponsoringexperts from the industries for teaching purposes, until necessarycapacity is built within the institute.

e) Nominate members on the Advisory Committee of the IMC.f) Impart practical/ on the job training to the trainees.

4.5 Other Conditions

(i) The Courses may be offered under the brand name by the IndustryPartner with a joint certificate by Partner Industry and GujaratKnowledge Society/ Gujarat Council of Vocational Training (GCVT).

(ii) After offering such courses and validating these for at least two years,these may be introduced as elective courses in regular curriculum ofITI/ Polytechnic/Engineering Colleges.

(iii) The State Level Approval Committee , from time to time, will decideand approve the scope and need for new courses as per the need ofIndustries.

5.0 Scheme - 3: Extension Training Centers at GIDC Estates/ IndustrialClusters/ Industrial Parks/ SEZs

5.1 The Scheme

The Scheme will be known as a "Scheme of financial assistance for extensiontraining centers at GIDC Estates/ Industrial Clusters/ Industrial Parks/SEZs".

5.2 Extension Training Centers

(i) Industry /Industries Association/ National Level Training

Institutions/ Developer could start Extension Training Centers of ITIs,Polytechnics and/or Engineering colleges in GIDC Estates / IndustryClusters / SEZs/ Industrial Parks to run specific courses to meet theindustry-specific manpower needs.

(ii) For extension centers, land and building shall be made available by

(a) GIDC in GIDC Estates

(b) Industry Clusters will provide the land and the IndustriesCommissionerate for the building thereon.

(c) Developers in SEZs / Industrial parks

5.3 Quantum of Assistance

(i) For each extension center, one time financial assistance to the extent offollowing percentages of the cost of machinery and equipment will beprovided, subject to maximum limit of Rs. 1 crore:

(a) 100% for GIDC estates

(b) 75% for Industrial Clusters, and the remaining by thecluster/ association

(c) 50% for Industrial Parks/ SEZs, and the remaining by thedeveloper

(ii) In case the cost of machinery and equipment exceeds the maximum

limit of assistance for GIDC estates, the same shall be borne by theIndustry /Industries Association/ National Level Training Institute.

(iii) There will be a MoU/ agreement between the relevant participatingagencies.

(iv) The assistance shall be provided under the Critical Infrastructure Fund

of Industries Commissionerate and/or Directorate of TechnicalEducation and/or Directorate of Employment & Training, Governmentof Gujarat.

(v) The State Level Approval Committee may decide to avail the servicesof National Level Training Institution to run the extension trainingcenters at GIDC Estates / Industrial Clusters.

6.0 Scheme - 4: Specialized Skill Development Centers

6.1 The scheme will be known as a "Scheme of financial assistance for settingup of specialized skill development centers".

6.2 Specialized Skill Development Areas

Assistance will be provided to institutes/ universities/ industries/ industriesassociation or any other legal entity registered under Societies Act, Trust Actor Companies Act for specialized training centers in areas like marineengineering, mining, specialized pipe laying, logistics & services etc. and suchother advance/ specialized technologies and management areas as may bedecided by the State Level Approval Committee under the aegis of GujaratKnowledge Society.

6.3 Quantum of Assistance

The assistance to the extent of 50%, with ceiling of maximum of Rs. 2 crore, ofthe project cost covering fixed capital investment in building, equipments andmachinery (including installation cost), electrification, furniture and othermiscellaneous investment, etc., except for land cost, will be provided.

7.0 Approval Procedure

7.1 State Level Approval Committee (SLAC)

(i) A Committee consisting of following members is constituted forsanction of assistance with respect to proposals received for theschemes.

Industries Commissioner ChairmanVC & MD/ Jt. MD, GIDC Member

Joint Secretary/ Dy. Secretary, Finance Department MemberDirector, Directorate of Employment & Training (DET) Member

Director, Directorate of Technical Education (DTE) MemberCEO, Gujarat Knowledge Society. Member

Director, Centre for Entrepreneurship Development Member Secretary(CED)

(ii) Any dispute/ interpretation or contention issue under the schemes willbe referred to the State Level Approval Committee, decision of whichwill be final and binding on the applicant.

(iii) All the applications for assistance under the schemes will be received

by, CED for onward submission to the Screening Committee.

7.2 Screening Committee(i) A Committee consisting of following members will screen and

appraise the proposals received by CED and will submit itsrecommendations to the State Level Approval Committee (SLAC).

Joint Director, Directorate of Employment & Training (DET) MemberJoint Director, Directorate of Technical Education (DTE) MemberJoint Industries Commissioner, Industries Commissionerate MemberOSD, iNDEXTb/ Representative from iNDEXTb Member

Chief Project Leader/ Project leader, CED Convener

(ii) The Screening Committee may also invite outside experts as and whennecessary to screen and appraise the proposals.

7.3 National Level Expert Institutes

(i) The State Level Approval Committee may decide to avail theconsultancy services of any national level expert institutes for effectiveimplementation of the projects and to pay professional fess of up to 5%of the total project cost.

(ii) Expert Institutes will act as consultant of the SLAC for guiding,supervising and monitoring of all the schemes.

(iii) The role of Expert Institutes would be as under:

(a) The Expert Institute will provide technical support to theSLAC for selecting the Anchor Institutes and for overseeingthe implementation after such selection.

(b) It will help in benchmarking the proposed curricula invarious sectors at all levels i.e. degree, diploma and ITI level.

(c) It will also help in benchmarking the required infrastructureat all the three levels in various sectors.

(d) It will assist in finalizing the work plan and implementationschedule and in its timely execution.

(e) It will provide such other support as may be required by theSLAC for successful implementation of the schemes.

8.0 All above schemes will be reviewed after two years with referenceintended outcome, actual performance and financial burden.

9.0 Expenditure

The expenditure on this account will be met from the sanctioned grant of therespective financial year under the following budget head:

Demand No.: 49

Major Head : 2852- IndustriesSub- Major Head: (800) Other Expenditure (23)

Minor Head : IND -4

Sub Head Assistance to Institute for Industrial Development (31)Item no. : Grant in Aid (02) (Plan)

This issues with the concurrence of Education Department dated 2/2/2009and that of Finance Department dated 10/2/2009 on this departments evennumber file.

By order and in the name of Governor of Gujarat.

Copy:

Copy:

(Shridevi Shukla)Deputy Secretary

Industries and Mines Department

1. Secretary to HE. Governor*2. Principal Secretary to Hon. CM*3. Advisor to CM4. Personal Secretary to all Hon. Ministers5. Under Secretary to the Chief Secretary6. Principal Secretary, Finance Department7. Industries Commissioner8. Commercial Tax Commissioner, Ahmedabad9. Managing Director IndextB

10. All Boards & Corporations of I & M Dept.11. Accountant General Ahmedabad/Rajkot*12. All Officers of I & M Dept.13. All Branches of I & M Dept.14. Select file

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